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You are a natural gas seller in New York, and you hedge your price risk with a futures contract, deliverable at Henry Hub, Louisiana. Which

You are a natural gas seller in New York, and you hedge your price risk with a futures contract, deliverable at Henry Hub, Louisiana. Which of the following statements is true?

a.

Your net hedge price will be equal to the futures price

b.

The risk you face after hedging is the product basis risk

c.

You can fully hedge your risk with the futures contract

d.

You cannot hedge the location basis with the futures contract

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